Early stages of technology intensive companies

Abstract This study aims to clarify the early development stages of technology intensive companies. The current literature does not offer an extensive review of stage perspectives for company growth – the overall picture of the field is somewhat vague. The evolution of this field remains unclear as well as the current state. Further, recent empirical stage models focusing on technology intensive companies have not been delineated. As companies move through their early stages, they face events which contribute to or detract from their aim. A study focusing on these events may provide fresh viewpoints for understanding the management processes. This study seeks to clarify how the literature describes the early stages of technology intensive companies, and what viewpoints are highlighted by the management as a company progresses through these sequences. This retrospective multiple case study clarifies the topic with two meta-analyses and a sequential incident study carried out in ten young technology intensive companies in Finland and Thailand. First, well covered areas, trends, and ideas for fresh approaches are studied through a meta-analysis of the past 60 years of literature focusing on stages of development. Based on recent empirical studies, a sequential self assessment framework is formed. Second, it is studied whether the case study methodology could be utilised to further clarify the early stages of technology intensive companies. Third, the experiences of ten case companies are reflected through the framework in order to test the framework, and to study what viewpoints these cases reveal about the early stages of technology intensive companies. This study provided an extensive review of the research focusing on the stages of development. A four-stage framework was found applicable for a self-assessment of the early stages in technology intensive companies, while ten case studies and cross case analysis provided partial support for the framework. In addition, this study provided many potential fresh viewpoints for a theory related to the early stages of technology intensive companies. These viewpoints are considered here as starting points for further research, which is expected to provide sufficient evidence for further modification of the framework.Tiivistelmä Tämän tutkimuksen tavoitteena on selkeyttää teknologiaintensiivisten yritysten varhaisia kehitysvaiheita. Kirjallisuus ei tarjoa kattavaa katsausta yrityksen kehitysvaiheita käsittelevästä tutkimuksesta – kokonaiskuva aiheesta jää jokseenkin epämääräiseksi samoin kuin alan kehitys ja nykytila. Lisäksi viimeaikaisten empiiristä aineistoa sisältävien vaihemallien tuloksia ei ole koottu yhteen. Varhaisissa kehitysvaiheissaan yritykset kohtaavat sekä tavoitteitaan edistäviä että estäviä tapahtumia. Tapahtumia tutkimalla on mahdollista nostaa esille tuoreita näkökulmia varhaisiin vaiheisiin liittyviin johtamisprosesseihin. Tämä tutkimus pyrkii selvittämään, kuinka teknologiayrityksen varhaiset kehitysvaiheet on kuvattu kirjallisuudessa ja mitä näkökulmia varhaisen kehityksen läpi käyneiden yritysten johto korostaa. Tämä takautuva monitapaustutkimus analysoi aihetta kahden meta-analyysin ja vaiheittain toteutetun kriittiset tapahtumat -menetelmän avulla. Tapaustutkimus suoritettiin kymmenessä suomalaisessa ja thaimaalaisessa yrityksessä. Ensiksi 60 edeltävää vuotta käsittävässä meta-analyysissä analysoitiin vaihemallien historia ja nykytila, trendit ja potentiaaliset ideat uusille lähestymistavoille. Viimeaikaisten empiiristen tutkimusten perusteella muodostettiin synteesi varhaisten kehitysvaiheiden itsearviointikehykseksi. Toiseksi tutkittiin voidaanko tapaustutkimusta hyödyntämällä edelleen selventää teknologiaintensiivisten yritysten varhaisia kehitysvaiheita. Kolmanneksi kymmenen tapausyrityksen kokemuksia peilattiin itsearviointikehykseen tarkoituksena testata kehystä ja analysoida mitä näkökulmia tapaukset paljastavat teknologiaintensiivisten yritysten varhaisista vaiheista. Tutkimus tarjosi laajan katsauksen yrityksen kehitysvaiheisiin keskittyvään tutkimuskenttään. Nelivaiheinen kehys todettiin soveltuvaksi varhaisten kehitysvaiheiden itsearviointiin teknologiaintensiivisissä yrityksissä – kymmenen tapausta ja näiden vertailu antoi osittaisen tuen tälle. Lisäksi tutkimus tarjosi useita uusia näkökulmia teknologiaintensiivisten yritysten varhaisia kehitysvaiheita käsittelevään teoriaan. Nämä näkökulmat toimivat lähtökohtana jatkotutkimuksille, joiden oletetaan tuovan riittävästi todistusaineistoa itsearviointikehyksen edelleenkehittämiseksi

Review of business growth models:methodology and the assumption of determinism

Abstract Numerous configuration models have attempted to clarify management priorities during the early stages of business growth. Earlier reviews have focused on the basic, visible characteristics of these models. Less attention has been paid to research methodology and basic assumptions. This study aims to fill this gap by review of configuration studies conducted over the past six decades. The focused meta-analysis reveals what kinds of research strategies, choices and time horizons, and empirical evidence are utilised for development of the models and what alternative views the models provide in relation to the assumption of deterministic firm growth. The study opens fresh perspectives to methodology and assumptions of the configuration studies and provides guidelines for future research

Analysis of service transfer within the CONNECT transnational innovation network:case Nordic countries

Abstract The CONNECT service transfer analysis reported here is part of BECSI (Business ecosystems and platforms for innovations) project. The aim of the project is to enhance Finnish in- novation systems and innovation policy by analysing world-class innovation environments and ecosystem cases from different levels: Smart cities as innovation platforms, Health and Life Science ecosystems and emerging small business ecosystems. BECSI project is granted by TEKES – the Finnish Funding Agency for Innovation through 2013 innovation research thematic call “Ecosystems, spillovers and new policy approaches”. This report is part of BECSI project’s Work Package 4 (WP4) Health & Life Sciences Eco- system Cases task 4.1: San Diego health and life sciences ecosystem study. The purpose of the WP4 is to study theme-specific “local-global” ecosystems that engage both public and private actors in a wide Public-Private Partnership (PPP)-network and to analyse their growth drivers’ transferability into Finnish context. The research activities included screening case studies, transferability analyses, road-mapping and research exchange. CONNECT was founded in 1985 in San Diego, USA. The organisation has been very suc- cessful in catalysing new innovations in the region. However, there is insufficient knowledge about the transferability of the CONNECT to other business contexts at the international level. To fill this gap, this study first describes the service portfolio of CONNECT in San Diego and global CONNECT activities. Then, the study analyses the results of the CONNECT transfer activities at the Nordic level from Swedish and Norwegian perspectives. By doing so, it is possible to compare the current service portfolio of CONNECT with the service portfolios of the currently active Nordic CONNECT organisations. This is also a good way to see to which services developed by CONNECT have been implemented in the Nordic context and to what extent. As Sweden and Norway are both culturally and geographically close to Finland, it is, to certain extent, possible to reflect the transferability potential of CONNECT to Finland through the experiences in these countries. The results of this study show that Springboard is the only service that has been licensed from San Diego to Sweden and Norway. Other services have mainly been developed by local CONNECT organisations. Despite collaboration between different entities, CONNECT can be considered a relatively loose international network. Tighter collaboration would require dedi- cated leadership and sufficient funding. Finally, geographical distances and cultural differ- ences can also be considered barriers for international collaboration

Knowledge as a competitive entrepreneurial asset:concepts and practices by early-stage entrepreneurs in creative industries

Abstract Industries linked to and built on creativity and design have been described as backbones of a modern economy by the likes of Florida (2002; 2005). This paper reviews the ways early-stage entrepreneurs of creative industries conceptualise knowledge and depict their development trajectory and practices in issues concerning knowledge. These entrepreneurs operate in the context of a knowledge economy that underlines the key role of knowledge as a source of advantage. As Moore (2000) claims, knowledge intensity creates entrepreneurial opportunities and results to offer an advantage. The current view of knowledge management (KM) stretches the realm of KM beyond the ability to create. Action on knowledge contains sub-processes of knowledge creation, maintenance, renewal, organisation, and transference, for example (Wiig, 1997). This multiple case study explores the way entrepreneurs express the nature of knowledge in the enterprise and in relation to their personal entfloridarepreneur role. Light is shed on the principles and practices of KM in entrepreneurial firms. The research is an exploratory and interpretative case study, revealing patterns of thoughts and behaviour in the companies studied. A sample of seven companies whose business activity is based on design and creativity were interviewed in-depth. The collected qualitative case data is thematically content-analysed to constitute a model of companies’ development trajectory in relation to knowledge. The study contributes to academic knowledge both in the areas of entrepreneurial studies as well as in KM. The practical contributions serve creativity-connected industries and early-stage entrepreneurs who can use the results to plan and foresee their KM

Competence-related challenges for micro-enterprises entering the field of servitization

Abstract The purpose of this study was to examine the competencies that micro-enterprises (micros) need in order to enter the field of servitization. Servitization is a great business opportunity for micros, but it is important to know what competencies a firm needs when targeting the longer and more profitable customer relationships that servitization may offer. Micros possess limited human resources and thus competencies, and it is crucial for them to understand competence-related challenges in order to operate successfully. This empirical study was conducted by employing a qualitative research approach in order to enrich the collected data and the findings. The multiple case strategy used here allowed for an extensive examination of the phenomenon of interest. Data were collected by means of interviews in eight Finnish subcontracting micros in the fields of forestry and mining in order to produce new information about the competence-related challenges faced by micros entering the field of servitization. The results show that micros face competence-related challenges in servitization in terms of entrepreneurship, functioning under change and financing. Entrepreneurial competencies are strongly linked to recognising opportunities and envisioning future business opportunities. There is also a need for change competencies, both for micros and customers, including the ability and willingness to change by renewing employees’ skills and methods of working. Financial difficulties and a lack of understanding regarding future economic responsibilities were highlighted as challenges. This competence-based approach to studying micros in the context of limited human resources allowed us to identify the competence-related challenges that micros face in the industrial mega-trend of servitization. In addition, this study addressed academic and practical application gaps in the study of micros

Resilience in sudden changes and crises related to micro-entrepreneurship

Abstract The paper examines micro-entrepreneurs’ resilience to significant changes in a company. The focus of this research is on uncovering the kinds of changes and crises entrepreneurs met and on how to classify these changes and crises? The unexpected changes that entrepreneurs may face can have a significant impact on both their current and future activities and can be directed either at the individual or the business level. In micro-entrepreneurship, entrepreneurs typically have to address changes and crises alone. To a micro-entrepreneur, a sudden change can be challenging because he/she does not necessarily have a support network to provide useful or sufficient help (Alonso et al., 2015). Managing such situations requires resilience and flexibility from entrepreneurs and companies alike. This empirical research was qualitative by nature and the research method was a retrospective multiple case study. The data collection method was based on semi-structured thematic interviews with 12 entrepreneurs and managers from the social and health care sector in Northern Finland. All interviews were audio-recorded and transcribed. The transcriptions were analysed by content analysis with an interpretative approach, each on a case-by-case basis. The data were processed using qualitative data analysis software. Preliminary results suggested that the challenges that micro-entrepreneurs considered the most serious related to internal and external interventions, such as problems with staff, management, management models, authorities, institutions and bureaucracy. In addition, emotional interventions like one’s own wellbeing and a lack of guidance and support related to real crises is a reality of a micro-entrepreneur’s life

Thematic analysis on business management priorities in service business

Abstract This paper views various management priorities used by service business entrepreneurs with a thematic analysis. Entrepreneurial behaviour is an individual-level phenomenon, which occurs over time, and results in an organization as the primary outcome of these activities. Entrepreneurs are necessary for entrepreneurial behaviour, and it is through actions of entrepreneurs that organizations come into existence. Thematic analysis is a search for themes that emerge as being important to the description of the phenomenon. Thus, this study sets focus on small business entrepreneur perspectives on entrepreneurship, innovation and management issues throughout business growth process. The focus is on how entrepreneurs generate knowledge themselves. This study focuses on an approach based on configuration theories that are concerned with the actual growth process, and how managerial problems appear and can be dealt with during a firm’s growth through presumed typical stages of development. Muhos et al (2017) identified four stages of service business growth based on a literature review of empirically-based studies. The stages are presented as a framework with nine horizontal growth management themes across all growth stages. These themes are: Focus; Power; Structure; Decision-making systems; Strategic management; Service development and delivery; Marketing; Human resources, and; Growth. This paper aims to analyse how small business entrepreneurs in service business tell their business growth stories. More specifically, the aim is to analyse which growth management themes appear in open-ended growth stories told by entrepreneurs themselves. The data set consists of parts of semi-structured entrepreneur interviews in social and healthcare service business. Eight entrepreneurs in Northern Finland were requested to tell their business growth stories in their own words. We adopted an approach of thematic analysis based on recommendations of Miles and Huberman (1994) to compare entrepreneurs’ open-ended growth stories to a pre-existing service business framework. More precisely, the growth stories were deductively analysed to meet a priori template of nine pre-conceived growth management themes. This study provides new understanding on business growth and growth management priorities from the often neglected perspective of small-business entrepreneurs themselves. This is important to create innovative platforms for enterprise growth and understanding business dynamics at the contextual level

Yrittäjärinki-hankkeen toimenpiteiden vaikuttavuusraportti

Abstract The aim of the work is to evaluate impact of Yrittäjärinki-project from the perspective of microenterprises. Project funded by Rieska-Leader operates in Ylivieska area. Impact studies are commonly used for evaluation of public organisations and projects, because also the process and causal relationships producing results and goals are acknowledged. Small and medium sized enterprises (SME) are providing vast potential to promote economic growth, export and employment. Microenterprises often located in rural area form majority of the national enterprise stock. Despite of their significant role for economy, information scarcity exists. The goal of the Yrittäjärinki-project is to advance occupational welfare, profitability and collaboration of microenterprises. Methodologically, in addition to case studies, impact assessment was performed by utilising a framework for public organisations and projects developed by VTT. The evaluation was done in the middle phase of project lifecycle, thus it serves as halfway evaluation and pre-evaluation. Research questions are summarized into the questions: 1) What are the project-produced impacts from the perspective of entrepreneurs? 2) What criteria should be used to evaluate projects? As results of the research, information regarding situation and need of firms before and during the project were achieved. Generally, measures were experienced well focused. Especially occupational health and welfare and collaboration were improved. Well doing firm networks and participates more actively to collaboration with other companies and organizations. New ideas, excitement and tools had been achieved to develop own business. The consequence of conceptual and thinking level work was reflected as attitudinal and practical level changes in own firm. Evaluation of profitability was challenging as the project was still ongoing. Part of the respondents felt profitability had been slightly improved or at least assumed it to increase with the gained knowhow and tools. Usually, impacts are revealed in the longer time period. However, entrepreneurs strengthened by the project had already been influencing their environment positively, e.g. by planning and operationalising many events reaching vast publicity. Entrepreneurs felt spirit of unity instead of previously prevailed feeling of lonely entrepreneurship. They had shared information, motivated and asked other entrepreneurs to join the collaboration. It had been realized that the support provided by company services was also meant for small sized firms. It can be expected that due to improved occupational welfare, new ideas, knowledge, tools and collaboration, participant companies are positively effecting Ylivieska business life. The project has attained wide-scale interest in the Northern Finland area. Concept of the pilot project is generalizable, as long as key personnel represents strong expertise of entrepreneurship and is easily approachable. The role of personal contact is essential in all stages of the project, including need mapping phase of planning, advertisement, communication and implementation of measures.Tiivistelmä Tutkimuksen tavoitteena on selvittää Rieska-Leader kehittämisyhdistyksen rahoittaman ja Ylivieskan alueella toimivan Yrittäjärinkihankkeen vaikuttavuutta hankkeeseen osallistuvien mikroyritysten näkökulmasta. Vaikuttavuusarviointia käytetään julkisten organisaatioiden ja hankkeiden arviointiin, sillä tavoitteiden toteutumisen ohella siinä tarkastellaan myös prosessia ja syy-seuraussuhteita, joilla tuloksia ja vaikutuksia on saatu. Pk-sektorilla on todettu olevan potentiaalia talouskasvun, vientitoiminnan ja työllistymisen kohentamiseksi. Mikroyritykset, joista huomattava osa toimii harvaanasutuilla alueilla, muodostavat suurimman osan Suomen yrityskannasta. Kansantaloudellisesti merkittävästä roolista huolimatta niistä on olemassa vähän tietoa. Yrittäjärinki-hankkeen tavoitteena on edistää mikroyritysten työhyvinvointia, kannattavuutta ja yhteistyötä. Menetelmällisesti hankkeen vaikuttavuuden arvioinnissa käytettiin VTT:n julkisille organisaatioille kehittämää vaikuttavuuden viitekehystä ja tapaustutkimuksia. Työ toteutettiin kaksivuotisen hankkeen puolivälissä, jolloin se toimii väliarviointina ja ennakkoarviointina. Tutkimusongelmat ovat tiivistettävissä kahteen kysymykseen: 1) Millaisia hankkeen vaikutukset olivat yrittäjien näkökulmasta? 2) Millaisilla kriteereillä hanketoiminnan vaikuttavuutta tulisi arvioida? Työn tuloksena saatiin tietoa yritysten tilanteesta ja tarpeista ennen hanketta ja sen aikana. Yrittäjät kokivat toimenpiteet hyvin kohdennetuiksi. Tavoitteista erityisesti työhyvinvointi ja yhteistyö olivat kohentuneet. Hyvinvoiva yritys osallistuu aktiivisemmin yritysten keskinäiseen ja YTEK yrityspalveluiden väliseen yhteistyöhön, sekä verkostoituu eri tahojen kanssa. Toimenpiteistä oli saatu oman liiketoiminnan kehittämiseen ideoita, intoa ja työkaluja. Yrittäjien ajatuksen tasolla tekemä työ näkyi asenteellisina ja käytännön tason muutoksina. Kannattavuutta oli vaikeampi arvioida hankeen ollessa kesken, mutta osa vastaajista koki sen nousseen tai nousevan työhyvinvoinnin ja osaamisen kohenemisen myötä. Usein vaikuttavuus ilmenee pidemmällä aikavälillä. Hankkeen voimaannuttamat yrittäjät olivat jo vaikuttaneet ympäristöönsä positiivisella tavalla, mm. ideoimalla ja toteuttamalla laajaa huomiota saaneita tapahtumia. Yrittäjät kokivat yhteenkuuluvaisuuden tunnetta aiemman yksinäisen yrittämisen tunteen sijaan. He olivat houkutelleet toimintaan mukaan muita yrittäjiä sekä levittäneet tietoa. Oli oivallettu, että yrityspalveluiden tuki on myös pienyrittäjiä varten. Odotettavissa on, että parantuneen työhyvinvoinnin, uusien ideoiden, oppien, työkalujen ja yhteistyön seurauksena yrittäjät vaikuttavat Ylivieskan elinkeinoelämään piristävästi. Hanke on herättänyt mielenkiintoa laajemminkin mm. Pohjois-Suomen alueella. Pilottihankkeen konsepti on yleistettävissä, kunhan vastuuhenkilöinä toimivat yrittäjyyttä syvällisesti tuntevat ja helposti lähestyttävät asiantuntijat. Henkilökohtaisen kontaktin merkitys on avainasemassa suunnitteluvaiheesta lähtien yrittäjien tarpeiden kartoittamisessa, hankkeen mainostamisessa ja toiminnan toteuttamisessa